How is Amazon doing with their cashless Just Walk Out?

Explore the innovative strides of Amazon's Just Walk Out technology and its impact on retail convenience.

Unpacking Amazon's Just Walk Out Technology

Amazon's Just Walk Out technology is a cashless shopping system that allows customers to enter a store, grab the items they need, and then leave without having to go through a traditional checkout process. This innovative technology uses a combination of computer vision, sensor fusion, and deep learning algorithms to automatically detect when products are taken off the shelves or put back. It then tracks the items in a virtual cart and charges the customer's Amazon account as they walk out of the store.

The Just Walk Out technology was first introduced by Amazon in 2018 with the opening of their cashierless convenience store, Amazon Go, in Seattle. Since then, Amazon has expanded this technology to other locations, including Amazon Go Grocery and Amazon Fresh stores. The goal of Just Walk Out is to provide a more convenient shopping experience for customers by eliminating the need for waiting in line or scanning items at a traditional checkout.

One of the key features of Just Walk Out is its ability to accurately track multiple customers in the store and differentiate between their items. This is achieved through a combination of cameras, weight sensors, and machine learning algorithms. The technology can detect when a customer picks up an item, puts it back, or places it in their bag. It can also handle situations where multiple customers are shopping together and picking up items simultaneously.

In addition to the convenience it offers to customers, Just Walk Out also provides benefits to retailers. By automating the checkout process, retailers can reduce labor costs and improve operational efficiency. They can also gather valuable data on customer behavior and preferences, which can be used to optimize store layouts, product placements, and inventory management.

Overall, Amazon's Just Walk Out technology has revolutionized the retail industry by reimagining the traditional checkout process. It has garnered attention and interest from both customers and retailers alike, and its future prospects look promising.

Current Performance and Market Acceptance

Many appreciate the convenience and time-saving benefits it offers, as they can simply grab the items they need and leave the store without any hassle. The technology has been particularly popular in urban areas where customers are looking for quick and efficient shopping experiences.

In terms of market acceptance, Just Walk Out has gained traction not only among consumers but also among other retailers. Several major retailers have shown interest in implementing similar cashierless technologies in their stores, inspired by Amazon's success. This indicates a growing acceptance and recognition of the potential of cashless shopping.

However, it is important to note that Just Walk Out technology is still in its early stages, and there are limitations and challenges that need to be addressed. These include issues related to item detection accuracy, handling large crowds, and ensuring a seamless experience for all customers. Amazon is continuously working to improve the technology and overcome these challenges.

Challenges Faced by Just Walk Out

When Amazon introduced its cashier-less technology, it was hailed as the future of retail. However, the company is now scaling back its "Just Walk Out" technology at its grocery stores, tempering its ambitious vision of an automated, frictionless checkout experience.

Amazon announced it is removing the technology from its U.S. Amazon Fresh grocery stores, where it allowed customers to pay for groceries without waiting in line or using self-checkout machines. Instead, Amazon will implement Dash Carts at over 40 locations. These "smart shopping carts" enable shoppers to scan groceries, link to online shopping lists, and check out directly from the cart. The company has been testing Dash Carts at some Fresh and Whole Foods locations.

Despite initial excitement, customers have not fully embraced cashier-less technology in grocery stores, particularly where they purchase larger quantities and need to weigh produce. Amazon believes the technology may be more effective in smaller stores, such as Amazon Go convenience stores.

Amazon stated it will continue using Just Walk Out technology in Amazon Go stores, smaller format Fresh stores in the UK, and third-party locations like certain sports stadiums and college campuses. The company previously employed around 1,000 workers in India to help monitor transactions, but it is now reducing the number of human reviews as the technology develops. Besides working on the underlying technology, these data associates also validate a small minority of shopping visits.

Customers enter Fresh stores using Amazon One palm recognition, the app, or a credit or debit card. Sensors, cameras, and deep learning tools track items taken off the shelves and automatically charge customers.

Amazon is also installing self-checkout kiosks and assisted checkout options at Fresh locations transitioning to Dash Carts. Retailers like Dollar General, Walmart, and Costco are reconsidering self-checkout due to increased merchandise losses from customer mistakes and shoplifting.

Amazon Fresh has faced challenges since opening its first store in 2020 and expanding to more than 40 locations across the U.S. After acquiring Whole Foods in 2017, Amazon added cashier-less checkout to those stores as well. In 2021, the company eliminated checkout lines in a 25,000-square-foot Amazon Fresh store in Washington state and planned to expand further. However, Amazon Fresh has struggled to attract grocery shoppers and has laid off workers.

Marketing Strategies Behind Amazon's Just Walk Out

We’ve heard from customers that while they appreciated skipping the checkout line with Just Walk Out, they also desired more features such as easily finding nearby products and deals, viewing their receipts as they shop, and tracking their savings throughout the store," noted Carly Golden, Amazon spokesperson.

The Information had previously reported on Amazon's decision to discontinue Just Walk Out in some Fresh stores. However, the innovative technology will still be featured in Amazon Go convenience stores and smaller Fresh locations in the U.K. Additionally, Amazon will continue licensing the cashier-less system to third parties.

Amazon first introduced the cashier-less technology in 2018 at a convenience store on its Seattle campus. This system uses an array of cameras and sensors to monitor items that shoppers take and automatically charge them as they leave.

To ensure accuracy, Amazon's system relies on human moderators and data labelers who review Just Walk Out transactions and label footage to train the AI models. According to The Information, the team consists of over 1,000 employees, primarily based in India. While Amazon has confirmed the use of human moderators, it has not disclosed the exact number of employees in these roles.

By shifting focus from Just Walk Out to Dash Carts at Fresh locations, Amazon aims to meet customer demands for more interactive and informative shopping experiences. This strategic move highlights Amazon's commitment to continuously innovate and enhance its retail offerings, ensuring they align with consumer preferences and expectations.

Future Prospects 

Amazon is phasing out its cashierless checkout systems, known as Just Walk Out, at Fresh supermarkets in the U.S., opting to use Dash Carts instead. These carts automatically track and tally items as shoppers place them in their carts, allowing them to bypass the checkout line.

Amazon spokesperson Carly Golden explained that the company has been redesigning many of its Fresh stores to enhance value, convenience, and selection, which has led to higher customer satisfaction and increased purchasing. Customers appreciated skipping the checkout line with Just Walk Out but also wanted easier access to nearby products, deals, and real-time receipt viewing.

The Just Walk Out technology will remain in Amazon Go convenience stores and some smaller Fresh locations in the U.K., and Amazon will continue to license it to third parties. The system, introduced in 2018 at a Seattle convenience store, uses cameras and sensors to monitor items and charge customers automatically. It also relies on human moderators and data labelers to train its AI models.